A Texas Jumbo Loan refers to any loan exceeding the maximum allowed under Fannie Mae and Freddie Mac’s loan limits for traditional loans, according to their loan limits. Jumbo loans Texas tend to carry higher rates than their conventional counterparts and are used mainly when purchasing higher-end homes such as custom-built properties as well as higher priced real estate properties with larger down payments required than conventional loans; they must make more down payments than regular conventional loans do and begin increasing in 2023, anything greater than this limit becomes known as Jumbo Mortgage loan loans. Jumbo loans Texas will have the following loan-to-value ratio. At a minimum, a Jumbo loan borrower requires at least a 10% down payment (but more often 20% or even 25-30%) as a minimum down payment to secure their Jumbo Buy Loan.
Jumbo Loan Limit in Texas
Beginning December 31st, 2023, according to the Federal Housing Finance Agency, new limits on jumbo loans in Texas have been announced:
Loan limits must keep pace as the Texas housing market grows; Jumbo Loan Limits have seen steady increases each year and currently stand at 726,200 across Texas counties (compare this figure to 2022 below).
2023 Statistics From Last Year
- 2916 counties remain at $647,200
- Loan limits in 108 counties containing New York City, San Francisco, and Los Angeles remain at $679,650 for single-unit homes. This area represents the most expensive real estate market.
- These areas may also have higher costs, though not to the same degree as counties mentioned earlier. Effective January 1st, 2022, loans up to the maximum limit of $679,650 for properties not located in Alaska, Hawaii, Guam, or the US Virgin Islands are increased to $1.019,475. For properties in these locations, the maximum loan limit has increased to $1,019,475. Further information regarding Jumbo Loans with risk and cost classifications can be found by prequalifying now!
What types of Jumbo loans are available in Texas?
Following are the various types of Jumbo loans in Texas:
→Purchase Jumbo:
Dream Home Mortgage provides Jumbo Loans with competitive rates at low costs to borrowers. Our Texas Purchase Jumbo Loans are extremely cost-effective and easier than larger banks to secure approval for. While other lenders fail to offer Jumbo Loans, our doors remain open.
→Refinancing Jumbo Loans Texas:
In terms of both rate and term, typically converts an adjustable-rate mortgage (ARM) loan into one with a fixed interest rate, or reduces current rates resulting in reduced monthly payments and savings over the life of the loan.
Jumbo loans Texas refinancing: It allows borrowers to obtain a larger Jumbo loan amount than what is presently outstanding, paying back any difference upon closing. Refinancing can help individuals use these additional funds for home improvements, debt consolidation, or investments with different investment options.
→Custom-designed Line of Credit:
Similar to equity in your home, refinancing a Jumbo Loan into a custom line of credit may allow borrowers to cover other costs such as tuition for college and medical expenses, home improvements or investing.
Jumbo Loans Texas Requirements:
Below are the requirements of Jumbo loans in Texas: The typical minimum middle credit score required for qualification is 680; typically however a Jumbo Mortgage borrower typically possesses a middle FICO score of 740 or above when borrowing one of these large mortgage loans from lenders or credit unions; it may even reach up into the 700s and low 800’s!
An applicant for a Jumbo Loan may also be required to present banks with bank records to show they can abide by the repayment schedule, and may also require cash reserves in order to cover closing expenses – typically 3 -6 percent of total property value.
Interest Rates for Jumbo Loans Texas
Interest rates for Jumbo Loans Texas tend to be higher when compared with conforming loans. There are typically two different kinds of jumbo mortgage loans: fixed-rate and adjustable rate (ARM). Additional considerations when borrowing are interest-only loans (HELOC or HELOAN), short-term buy-downs or interest-only mortgages. When using these forms of financing the borrower can’t build equity with regular interest-only payments and cannot make equity contributions through regular monthly interest-only payments. To build equity, borrowers must voluntarily make interest-only payments during an interest-only timeframe. A Line of Credit (HELOC, also HELOAN) with variable (ARM) interest rates may increase or decrease monthly payments depending on interest rate fluctuations; the borrower can opt to convert all outstanding credit lines to fixed rate amortized over 5-20-year terms if desired.
Jumbo Loan Loan-to-Value Ratio
Jumbo loans Texas will have the following loan-to-value ratio. At a minimum, a Jumbo loan borrower requires at least 10% down payment (but more often 20% or even 25-30%) as a minimum down payment to secure their Jumbo Buy Loan. Each case is reviewed individually depending on their circumstances as each borrower needs different requirements based on credit scores, type of home being purchased; certain borrowers may even require 25-30 percent depending on these factors alone! For more information about Jumbo loans Texas or other non-conforming loans please call Dream Home Mortgage at (972) 245-5626
